IDEAS home Printed from https://ideas.repec.org/a/uii/journl/v3y2011i1p77-85.html
   My bibliography  Save this article

Elasticity of corn price transmision and its implication to farmers

Author

Listed:
  • Ahmad Muslim

    (Faculty of Economics, Universitas Al Azhar Indonesia)

Abstract

Corn has important roles to Indonesian economy both for staple foods and for price transmission to other products. The high domestic demand for corn compared to its domestic production has made corn imports continue to grow. This research is aimed to know the elasticity of price transmission and its implication to corn?s farmers. The results of analysis show that corn price transmission is inelastic. The coefficient shows that corn market is oligopsony under the imperfect competition market. To help the corn farmers, the government has to provide fertilizer subsidy and farm credit with low interest rates, as well as impose import tariff on corn

Suggested Citation

  • Ahmad Muslim, 2011. "Elasticity of corn price transmision and its implication to farmers," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(1), pages 77-85, April.
    • Handle: RePEc:uii:journl:v:3:y:2011:i:1:p:77-85
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEP/article/download/2321/2120
    Download Restriction: no
    File URL: https://journal.uii.ac.id/JEP/article/view/2321/2120
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frank Asche & Shabbar Jaffry & Jessica Hartmann, 2007. "Price transmission and market integration: vertical and horizontal price linkages for salmon," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2535-2545.
    2. S McCorriston & CW Morgan & AJ Rayner, 2001. "Price transmission: the interaction between market power and returns to scale," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(2), pages 143-159, June.
    3. Islam Hassouneh & Teresa Serra & José M. Gil, 2010. "Price transmission in the Spanish bovine sector: the BSE effect," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 33-42, January.
    4. Byeong‐Il Ahn & Hyunok Lee, 2010. "An equilibrium displacement approach to oligopoly market analysis: an application to trade in the Korean infant formula market," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 101-109, March.
    5. Chia‐Hung Sun, 2010. "The impact of auction characteristics on prices of agricultural products traded online: evidence from cherries," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 587-594, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Cattivelli & Federico Antonioli, 2023. "When cointegration is interrupted: Price transmission analysis in the Italian dairy‐feed industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 744-761, July.
    2. Dharmasena, Senarath & Davis, George & Capps, Oral, Jr., 2014. "Partial versus General Equilibrium Calorie and Revenue Effects Associated with a Sugar-Sweetened Beverage Tax," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-17.
    3. Bakucs, Lajos Zoltan & Falkowski, Jan & Ferto, Imre, 2012. "What causes asymmetric price transmission in agro-food sector? Meta-analysis perspective," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134765, Agricultural Economics Society.
    4. El Benni, Nadja & Finger, Robert & Hediger, Werner, 2014. "Transmission of beef and veal prices in different marketing channels," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182696, European Association of Agricultural Economists.
    5. GwanSeon Kim & Tyler Mark, 2017. "Impacts of corn price and imported beef price on domestic beef price in South Korea," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-13, December.
    6. Alejandro Acosta & Carlos Barrantes & Rico Ihle, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime‐dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 960-976, July.
    7. Werner Hediger, 2013. "From Multifunctionality and Sustainability of Agriculture to the Social Responsibility of the Agri-food System," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 59-80.
    8. Aysoy, Cevriye & Kirli, Duygu Halim & Tumen, Semih, 2015. "How does a shorter supply chain affect pricing of fresh food? Evidence from a natural experiment," Food Policy, Elsevier, vol. 57(C), pages 104-113.
    9. Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2010. "Local impacts of a global crisis: Food price transmission, consumer welfare and poverty in Ghana," Food Policy, Elsevier, vol. 35(4), pages 294-302, August.
    10. Jean-Philippe Gervais, 2011. "Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1497-1510.
    11. Stefano Mainardi, 2018. "Fishing vessel efficiency, skipper skills and hake pricetransmission in a small island economy," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 215-251.
    12. Hoque, Mohammad Mainul & Schroeter, John R., 2010. "Agricultural trade liberalization and downstream market power: some extensions," ISU General Staff Papers 201003260700001109, Iowa State University, Department of Economics.
    13. Muth Mary K & Wohlgenant Michael K & Karns Shawn A & Anderson Donald W, 2003. "Explaining Plant Exit in the U.S. Meat and Poultry Industries," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-23, January.
    14. Maria Garrone & Jo Swinnen, 2018. "Mark-up volatility in Food Value Chains: Evidence from France and Italy," Working Papers of LICOS - Centre for Institutions and Economic Performance 626586, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    15. Assefa, Tsion & Meuwissen, Miranda & Lansink, Alfons G.J.M., 2015. "Food scares and price volatility: the case of German and Spanish pig chains," 2015 Conference, August 9-14, 2015, Milan, Italy 210966, International Association of Agricultural Economists.
    16. Novak, Petr, 2007. "Some approaches to the analysis of market structure's impact in milk commodity chain," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7822, European Association of Agricultural Economists.
    17. Drabik, Dusan & Ciaian, Pavel & Pokrivcak, Jan, 2014. "Biofuels and vertical price transmission: the case of the U.S. corn, ethanol and food markets," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182697, European Association of Agricultural Economists.
    18. Dariusz Kusz & Bożena Kusz & Paweł Hydzik, 2022. "Changes in the Price of Food and Agricultural Raw Materials in Poland in the Context of the European Union Accession," Sustainability, MDPI, vol. 14(8), pages 1-21, April.
    19. Russo, Carlo & Goodhue, Rachael, 2014. "Farmgate versus retail prices and supermarkets’ pricing decisions: an integrated approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182779, European Association of Agricultural Economists.
    20. Ji-Liang Shiu & Chia-Hung D. Sun, 2014. "The determinants of price in online auctions: more evidence from unbalanced panel data," Journal of Applied Statistics, Taylor & Francis Journals, vol. 41(2), pages 382-392, February.

    More about this item

    Keywords

    Corn; Elasticity of price transmission; oligopsony; imperfect competition market;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:journl:v:3:y:2011:i:1:p:77-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.